Published on 2/12/2024 in the Prospect News Investment Grade Daily.
New Issue: Estee Lauder prices $650 million 5% 10-year senior notes at 87 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Feb. 12 – Estee Lauder Cos. Inc. priced $650 million of 5% 10-year senior notes (A1/A) on Monday at a spread of 87 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The issue priced at 99.689 to yield 5.04%.
BofA Securities, Inc., Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, which may include funding a portion of the purchase price of the remaining interest in Deciem Beauty Group Inc., operating expenses, working capital, capital expenditures and redemption/repayment of debt. As of Feb. 9, 2024, the company had $1 billion of short-term commercial paper outstanding, due at various dates through March 2024, at an average interest rate of 5.4209%.
The skin care, makeup, fragrance and hair care product manufacturer is based in New York.
| Issuer: | Estee Lauder Cos. Inc.
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| Amount: | $650 million
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| Issue: | Senior notes
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| Maturity: | Feb. 14, 2034
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| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
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| Co-managers: | HSBC Securities (USA) Inc., ICBC Standard Bank plc, RBC Capital Markets, LLC, SG Americas Securities, LLC, U.S. Bancorp Investments, Inc., Academy Securities, Inc., BBVA Securities Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
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| Trustee: | U.S. Bank Trust NA
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| Counsel to issuer: | Weil, Gotshal & Manges LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 5%
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| Price: | 99.689
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| Yield: | 5.04%
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| Spread: | Treasuries plus 87 bps
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| Call features: | Make-whole call before Nov. 14, 2033 at Treasuries plus 15 bps; thereafter at par
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| Trade date: | Feb. 12
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| Settlement date: | Feb. 14
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| Ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 29736RAV2
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